Charlotte, N.C.-based investment management firm Babson Capital Management closed Babson Mid-Market CLO Ltd. 2007-II, the firm's first CLO to focus on middle-market loans, and the eighth CLO closed by the U.S. bank loan team in the past two years.

Babson's latest fund, an extension of the bank loan team's existing platform, which has historically invested in broadly syndicated deals, will allocate approximately 50% to companies with $50 million to $500 million in annual revenues. The other half will be invested in broadly syndicated loans. "It could ebb or flow 10% on either side of that, but that is the target," said Russ Morrison, head of portfolio management and research for Babson's U.S. bank loan team.

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